An integrated hiring strategy enables
a company to be more nimble, to
strike a balance between fixed and variable labor costs, and to drive the
greatest value or return on the investment in human capital. Key to developing
such a strategy is understanding exactly
who your employees are, which are
focused on core functions, and which are
dedicated to noncore functions.
Matching permanent employers with
core functions and temporary employees with noncore functions is the best
way to establish work force efficiency.
“Begin with an internal audit to determine
whether their activities are core or non-core” says Kristen Denning, an account
executive for Spherion Professional
Services Group. “While it may sound like a
daunting task, it is a fairly simple survey
process that can reveal a host of areas
where work force structure can be
improved and greater flexibility generated.”
Smart Business asked Denning how to
develop an integrated hiring strategy with
the ultimate goal of maximizing both
work force and bottom-line efficiency.
Why define core and noncore functions?
To increase work force stability and flexibility, employers must clearly and thoughtfully define their core and noncore activities. Core activities are mission-critical,
while noncore activities just support the
mission. For example, in an organization’s
sales unit, developing sales strategies, business development activities and contacting
and pitching potential clients would usually be considered core functions that must
be handled by employed workers who best
understand the company mission, culture
and business.
On the other hand, administrative personnel engaged in mailing sales materials or updating customer information
systems are not completing mission-critical activities, and their work does not
require in-depth understanding of the
company in order to be successfully
completed. These would likely be categorized as noncore in a survey of work
force activities.
Once jobs are categorized, how do you
organize them to be more efficient?
Each business segment must be evaluated and its activities categorized as
core or noncore. The product of this
process is a detailed inventory of activities that must be managed by employed
talent (core or mission-critical functions) and those that can be managed by
supplied staff (noncore or mission-supportive functions). This is the first vital
step in laying a foundation for flexibility
within your overall work force.
After core and noncore functions are
defined, the next step is to evaluate current work force alignment. Are there
employed workers dedicated entirely to
noncore functions? Should their knowledge of the company and tenure be
focused on core objectives? Would dedicating flexible talent to those noncore
activities reduce costs and allow you to
focus your employed talent on revenue-driving initiatives?
Alternatively, are supplied employees
performing core functions? Employers
are often shocked to discover they’ve
been outsourcing mission-critical activities or, conversely, utilizing full-time
employees in noncore, low-ROI roles.
Does the work force structure have to be
flexible?
Once mission-critical and mission-supportive activities have been identified,
organizations can focus on realigning
their work force — ensuring that
employed talent is assigned to mission-critical functions and working with an
outside expert for supplied mission-supportive talent.
The benefits of this strategy can be tangible and track directly to the bottom
line. From outsourcing and flexible
staffing to contingent and contract hiring, you are now able to reconfigure
noncore employment structures for
greater adaptability. Often, companies
only plan for the big economic cycles —
such as recessions — when today’s marketplace is characterized by small, frequent cycle changes unique to individual
companies. In fact, businesses today
must be able to react at different speeds
and intensity depending on their unique
situations.
Not only can a flexible work force
structure yield reductions in employment costs, it can also insulate your
work force from the minor adjustments
that might be required in response to
small, internal changes, as well as from
the impact of larger shifts in economic
cycles.
Companies that increase their contract
work force will enjoy greater leverage
during difficult times. If cost-cutting
becomes necessary due to an industry
slowdown or unexpected devastating
event, adjustments can be made to the
flexible work force rather than dismantling your core work force and losing
valuable intellectual capital to a temporary situation. With the right balance of
employed and supplied talent in place,
employers will be able to respond fluidly and effectively to both adversity and
opportunity.
KRISTEN DENNING is an account executive for Spherion
Professional Services Group. Reach her at (813) 864-1111 or
[email protected].